Allworth Homes provides some insights into the benefits of building a new home for an investment property
These days, vacant land and new residential communities are popping up all over the place. Investors should take advantage of this by turning their investment property into a renters dream.
Stephen Thompson, managing director at Allworth Homes said, “Investors should consider building a new home for their next investment property. It is a lot easier than perceived and will give you many benefits along the way.
“Building a new home gives you a blank slate to work with, allowing you to choose all of the decorative features that you prefer. New means low maintenance and more energy efficient as a result of being constructed with the most up-to-date materials, saving you money in the long run.”
Allworth Homes outlines the reasons why investors should build their next home
• It’s not as hard as you think. Investors can have minimal hands-on involvement throughout the process and deal directly with the builder to purpose build what they want on their land.
• Choose the best block. Most builders will assess your block of land free of charge. Or select from land the builder may have already assessed as suitable
• Choose the design. Think about what your ideal tenant would want and choose a design to suit. Choose how many bedrooms, bathrooms and even living areas. There are multiple options to choose from when you building new.
• New homes command top dollar rental. People want to be a part of something new. A brand new property in a great location is super attractive to potential tenants.
• Capital gain. Selecting a block and builder yourself means you’re the one that will enjoy the capital gain when it comes time to selling the property.
• Tax advantages. Depreciation allowances apply on the building and also some home contents. Investors should consult with their finance professional to determine their exact tax advantages.
• Lower ongoing maintenance cost. Big repair bills are a negative to your bottom line and viability of the property as an investment.
• Save money! Do a little legwork and cut out the middle man. Investor buyers are paying a premium for ready-built.
Stephen Thompson said, “You also make big savings on the stamp duty payable at purchase. As the property is not yet built, you only pay stamp duty on the land component. You’ll still need a construction loan as the house is being built, but as the interest is all tax deductible, you’ll be out in front.”